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Pompeii Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt-equity ratio of 40 percent and makes interest payments

Pompeii Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt-equity ratio of 40 percent and makes interest payments of $58,000 at the end of each year. The cost of the firms levered equity is 19 percent. Each store estimates that annual sales will be $1.515 million; annual cost of goods sold will be $825,000; and annual general and administrative costs will be $485,000. These cash flows are expected to remain the same forever. The corporate tax rate is 21%.

A- Use flow to equity to determine the value of the company's equity.

B- What is the total value of the company?

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